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Question
Based on the above table, an open market operation in which the Fed purchased $100,000 of government securities would
A) create a reserve deficiency for the banking system.
B) lead to a maximum potential expansion of the money supply of $100,000.
C) lead to a maximum potential expansion of the money supply of $1 million.
D) cause demand deposits to fall by $100,000.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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